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Deadlines loom for Coronavirus Business Interruption Loan Scheme and Bounce Back Loans
Unless the Government announces otherwise, the Coronavirus Business Interruption Loan Scheme will close for new applicants on 30th September – six months after the scheme was introduced to help businesses with their cashflow due to the COVID-19 lockdown.
CBILS was initially set to have a hard close, but lenders now have until 30th November 2020 to process applications they receive by 30th September 2020. Any new applications submitted after this deadline will not be eligible for CBILS funding.
Announced in the Budget on 18th March and revised on 2nd April, CBILS was one of a series of measures to help businesses during the COVID-19 pandemic. It was designed to help eligible sector UK businesses with a turnover of up to £45 million to access Government-backed finance of up to £5 million delivered by the British Business Bank via accredited lenders and partners.
The Government pledged to cover interest payments and any lender-levied fees for businesses for an initial period of up to 12 months. CBILS also provided lenders with a Government-backed guarantee for up to 80% of the outstanding balance of eligible facilities.
Those seeking funding from the Bounce Back Loans Scheme (BBLS) will have a little longer to apply as this scheme closes 4th November 2020. BBLS loans are capped at £50,000 but if you have already taken a loan and have since reconsidered your cashflow forecasts and you need more funding, you can apply for a CBILS loan.
BBLS was introduced to help free up a backlog of credit checks by banks amid fears many small businesses could collapse before receiving much-needed loan funding. The scheme requires applicants complete a two-page self-certification form online, while the loan terms mean no capital or interest repayments will be due for one year.
We can help
If you have any questions about how to access Coronavirus Business Interruption Loan Scheme or Bounce Back Loans Scheme, please talk to us on 01494 778900 or use our online enquiry form for a free initial consultation. We can offer initial consultations, advice and support over the phone if you have any concerns about face-to-face meetings.
Date published 4 Sep 2020 | Last updated 7 Oct 2020
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